US Cogeneration Overview

1. US Cogeneration Overview January 2009

2. Summary • Part of NA Refining SPU • 3 Operating Facilities • South Houston Green Power, Texas City, Texas • Whiting Clean Energy, Whiting, Indiana • Watson Cogeneration, Carson, California • 250 MW Steam Turbine Project in Construction – SHGP • Early Development of 5th Gas Turbine Train – Watson • Centralized Support, Houston, Texas • HSSE, technical, commercial, regulatory compliance

3. South Houston Green Power • 100% owned and operated by BP • 735 MW Electric Capacity • 4.6 MMlb/hr Steam Capacity • Two Facilities • GP2 – 2004 • 3 GE 7FA CTGs with HRSGs • 100 MW STG • Power 4 – 1984 • 2 GE 7EA CTGs with HRSGs • 35 MW STG • 275 klb/hr Package Boiler • Energy Sales • Refinery • 2.2MMlb/hr Steam • 305 MW Electricity • Tolling Agreement with BP Energy • Fuel • Natural Gas – BPE • Refinery Fuel Gas

4. STG805 Project • 250 MW STG Expansion for SHGP • $133MM CapEx • Construction Complete, Current Lay Up • Commissioning in 2009 • Rationale • Operational flexibility • Increase refinery fuel gas sink • Ends steam venting (~400klb/hr + most upsets) • Removes fuel gas constraints to refinery operations • Increase BPE trading positions • Provides new power peaking capacity • Decouples electricity and steam • Stand-alone power generation during major refinery upsets • Unlocks MWs from existing generation • Increases value from dispatch certainty

5. Whiting Clean Energy • Configuration: 2 x 1 GE7FA Combined Cycle Cogen • Power: 76 to 525 MW (560 Max) • Steam: 0 to 1,100 kpph @ 1300 psi • Fuel: Natural Gas: (27 to 66 kSCFD) supplied by BP Canada • COD: April 7, 2002 • Ownership: 100% BP • Operations: O&M Agreement with GE, running through 2022, covers both plant operations and maintenance and long-term maintenance of the GTs. • WCE employs 32 people (2 BPAE, 20 GE and 10 additional miscellaneous contractors). • WBU supplies treated water to a WCE owned demineralized water treatment plant, which is operated and maintained under a separate contract with Siemens. • Commercial: • Steam: Up to 1100 kpph sold to WBU under a new SSA. • Power: All energy and capacity marketed by BP Energy under a new EMA into the merchant Midwest ISO.

6. Watson Cogeneration • Capacity (MW) – 420 MW nominal Cogeneration facility that is a Qualifying Facility (QF) under PURPA • Location: Carson, CA at the BP Carson Refinery • BP interest: 51%; Edison Mission Energy owns 49% Commercial Operation Date (COD): April 6, 1988 • PPAs: • Watson’s sells excess electricity to SoCal Edison. Original 20 year PPA was to expire in early 2008 • CPUC Decision in September 2007 ordered new Standard Offer Contracts • Watson has 5 year agreements for steam, power, and fuel gas with the BP Carson refinery • Supply Agreements: BP Energy supplies Natural Gas through April 09 • Tight Integration with BP Carson Refinery • Operations – steam, power, fuel gas • HSSE – policy, procedure, emergency response • Integrity Management – managed as part of the Carson refinery’s program • Personnel – all WCC employees are seconded from Carson refinery

7. Watson Reliability Project • Rationale • More reliably meet the Carson refinery’s current steam demand of 1.2 million pounds per hour • Reduce the possibility of refinery upsets due to loss of steam or power • Utilize reclaimed water supply • Joint venture between BP and Edison Mission Group • Fifth train within existing cogeneration facility • GE 7EA gas turbine producing 85 MW • Duct fired HRSG producing up to 659 kpph steam • Best Available Control Technology (DLN, SCR & CO) • Minimal infrastructure required • Submit AFC October 2008 • AFC Approved December 2009 • Begin Construction February 2010 • Startup and Testing October 2011 • Commercial Operation May 2012* *Assumes major equipment is ordered prior to AFC approval; otherwise, targeted COD is January 2013.